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Intel Profit Gain Validates Heavy Spending

Gross Margin Beats
Forecast Amid Race
To Fend Off AMD

By

Robert A. Guth

Updated April 18, 2007 12:01 a.m. ET

(See Corrections & Amplifications item below.)

Intel Corp.'s first-quarter results reflect the chip giant's huge challenge at striking a balance between stabilizing profit margins while investing heavily in new technology to fend off its lead competitor.